Gateway Rail Freight director and chief executive Sachin Bhanushali said Indian logistics sector is plagued by the major issue of parcel size. “India is a trucking nation, we operate on small parcel size and lose out on the cost advantage of scale,” said Bhanushali emphasising on the loss of economies of scale benefit.

Many times in India, transporters also have to bear the cost of return haul as well, said Kalasad highlighting the unorganised nature of logistics sector. Similarly, multiple handlers pilfer and damage consignments, he said. “These issues could be easily fixed by utilizing the vast rail network in the country more effectively, completing the transport cycle through last mile connectivity and intermodal transportation,” added Bhanushali. However, conferring the status of infrastructure on logistics sector mobilised investment, leading to high quality warehousing in the country, said commercial real estate services and investment firm CBRE senior director Karunakaran.

“Over the last three quarters, 70 to 80 million square foot space has been absorbed by the logistic sector and this is not just in major cities but in tier 2 and 3 cities as well,” said Karunakaran.